Exporters call for repeal of amended VAT rules

A RECENT anti-smuggling amendment to the Value Added Tax act, which requires exporters of goods on contracts which include carriage of goods to supply proof of delivery and payment within 60 days of delivery of the goods or pay up the VAT, has drawn strong criticism from the export community.
These exporters are being unfairly burdened by the changed requirements, says JCCI's Tish Schutte, who is involved in the Chamber's lobby for a repeal of the amendment.
Very few payments are made in 60 days, says Schutte, and the amendment places an unnecessary burden on these exporters, inhibiting them, she says.
SARS seems to acknowledge this when it says the VAT paid can be reclaimed as long as proof of payment is supplied within a year.
That's all very well, she says, but it ignores the administrative nightmare of reclaiming VAT as well as the problems that are created by lost claims and documents.
The amendment was made to curb smuggling, and while we welcome its purpose, we believe it should be refined so that it does not hamper legitimate exporters.